Stock Market Update

[BRIEFING.COM] The stock market opened to losses as yields climb in response to this morning's labor market data. The S&P 500 sports a 1.7% decline and the Nasdaq Composite trades 2.2% lower.

Nonfarm payrolls increased by a stronger-than-expected 256,000, the unemployment rate slipped to 4.1% from 4.2%, average hourly earnings growth year-over-year was a sturdy 3.9%, and more people were employed. The negative vibe in the market stems from worries about sticky inflation fueled by a strong labor market and earnings growth, along with concerns that the Fed won't cut rates for an extended period.

The 10-yr yield was at 4.70% ahead of the report and jumped to 4.78% in response. It sits at 4.75% now. 

Many stocks are participating in today's broad retreat. 24 of the 30 Dow components are lower and nine of the 11 S&P 500 sectors trade down. The information technology (-2.8%), communication services (-2.1%), financials (-2.0%), and consumer discretionary (-1.7%) sectors, which house some of the most influential stocks, show the largest declines thus far. 

The University of Michigan Consumer Sentiment survey dropped to 73.2 in the preliminary January reading (Briefing.com consensus 73.5) from 74.0.